High bullion prices led some people to sell old jewelry in India this week amid weak physical demand for gold, while a resurgence in China’s COVID-19 cases hit precious metal buying. in the country.
India’s gold imports could fall in March as demand is weak and there was a large flow of old jewelry and coins, a Kolkata-based bullion dealer said.
Dealers offered a rebate of up to $53 per ounce off official domestic prices, including 10.75% import levies and 3% on sales, more than the $45 rebate from the last week.
Local gold prices in India jumped near historic highs earlier this month.
“Retail buyers are waiting for a correction. Jewelers are not buying as the (country’s) financial year is coming to an end and they want to close accounts,” a Mumbai-based bullion dealer told a bank private.
In China, gold discounts settled at around $5 an ounce on global benchmark spot rates, down from $4-6 the previous week.
Over the past month, gold has sold at lower premiums as the pandemic has not stopped in many cities across China, which has impacted buying, said Roland Wang, regional CEO of WGC China.
The slowdown in seasonal demand and the rise in prices over a short period due to geographical tensions also led to a slowdown in Chinese demand for gold, he added.
In Hong Kong, gold was being sold between an 80 cent discount and a premium of $2, while in Singapore it was trading at premiums of around $1.20 to $1.50 an ounce. . “There’s more bulk buying since people are actually covering shorts when prices were high,” said Brian Lan, managing director of retailer GoldSilver Central.
“But we’re mainly seeing more sales from wholesalers at higher price points, like $1,940 and up,” Lan added.
In Tokyo, gold was sold at a discount of 50 cents and a premium of 50 cents.
(Reporting by Seher Dareen, Swati Verma, Asha Sistla and Bharat Govind Gautam in Bengaluru, Rajendra Jhadav in Mumbai; Editing by Vinay Dwivedi)